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Ex-bank president in Texas gets 8 years for fake loans, arson to try to cover up fraud

A former Texas financial institution president who issued tens of millions in fake loans over virtually a decade and set a hearth to try and cover the fraud was sentenced to eight years in jail Tuesday, prosecutors mentioned.

Anita Gail Moody, 57, pleaded responsible in June to conspiracy to commit financial institution fraud and arson.

She was ordered to pay greater than $11 million in restitution, which is what the now-closed Enloe State Bank that she ran misplaced, the U.S. Attorney’s Office for the Eastern District of Texas mentioned.

Moody was president of the financial institution in Cooper, round 80 miles northeast of Dallas, and the fraud she pleaded responsible to started in 2012.

In May 2019 — in the future earlier than the Texas Department of Banking was scheduled to conduct a assessment — Moody set a hearth in the financial institution boardroom with information left on a desk, all of which have been burned, in accordance to prosecutors.

She had created greater than 100 fraudulent loans over the years, prosecutors mentioned in court docket paperwork.

She used among the cash on her boyfriend’s and pals’ companies, for household and for her personal life-style, together with a Jeep. Other federal investigators mentioned among the loans have been taken out to pay the curiosity and principal on the others, in order that nothing would appear amiss.

A request for remark from Moody’s legal professional was not instantly returned Tuesday evening.

Her legal professional argued in court docket paperwork that Moody labored for the financial institution her entire grownup life and described a life spiraling uncontrolled, including that she first lent the cash out of sympathy, however in 2012 began started utilizing the loans for herself.

“Criminal conduct that affects the financial health of a small, local lender can send a negative ripple effect throughout the entire community,” performing U.S. Attorney Nicholas J. Ganjei said in a statement.

The financial institution was closed by the Texas Department of Banking in 2019. It had been chartered in 1928. At the time, the division said it was compelled to achieve this “due to insider abuse and fraud by former officers.”

A former financial institution vice president, Jeannie Swaim, final 12 months pleaded responsible to a single rely and was sentenced to two years in jail and ordered to pay greater than $410,000 in restitution, in accordance to the U.S. legal professional’s workplace and court docket data.

The Federal Deposit Insurance Corporation, which insures deposits, was appointed as receiver after the financial institution failed. The loss to the company’s deposit insurance coverage fund was round $21 million, an inspector normal’s report said.

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